Medtronic announces co-promotion agreement with CathWorks for FFRangio System, with potential, toward acquisition
Medtronic plc announced it has entered into a strategic partnership agreement with CathWorks, a privately held company headquartered in Kefar Sava, Israel, which aims to transform how coronary artery disease (CAD) is diagnosed and treated.
As part of the agreement, Medtronic will invest up to $75 million and immediately begin co-promotion of CathWorks' FFRangio System in the U.S., Europe and Japan, where it is commercially available.
As part of a separate agreement, Medtronic will have the option to acquire CathWorks once certain undisclosed milestones are met. CathWorks will also have the right to compel Medtronic to acquire the company if Medtronic chooses not to exercise its option. The acquisition option agreement will expire in July of 2027, with an estimated acquisition of up to $585 million and potential undisclosed earn-out payments post-acquisition. Medtronic has held a minority investment in CathWorks since 2018.
For Medtronic, the deal presents a way to strengthen its cardiovascular portfolio. CathWorks pitches its technology as a tool that combines angiograms and computational science to support coronary artery disease decisions, for example by showing where fractional flow reserve drops occur.
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